Grameen Capital India (GCI), an investor in microfinance institutions and other social enterprises, recently announced the acquisition of a 43 percent stake in the company by Indian technology entrepreneurs Amit and Arihant Patni. The shareholding was acquired from former investor IFMR Trust, an Indian nonprofit organization that promotes access to finance and was among the founders of GCI. The CEO of Grameen Capital India, Royston Braganza, remarked, “We are absolutely delighted to have Amit and Arihant Patni on board. Grameen Capital was set up to build bridges for capital to flow to enterprises serving the poor and a key challenge has always been finding domestic capital, hence this, for us, is extra-special….We welcome the Patnis as we step into the next phase of our growth by building on our advisory business and launching fund-based solutions for the impact space.”
A statement from the Patnis read, “The real Indian growth story will be a reality when all segments of the population are part of the move upward… We are excited to be part of the work of Grameen Capital India and look forward to bringing our learning from the technology space in particular to accelerate the war against poverty.”
GCI will continue to provide access to capital markets for microfinance institutions and other social enterprises through debt and equity solutions, credit enhancement and advisory services. GCI aims to operate along the lines of Nobel Laureate Muhammad Yunus’s social business principles, which state that “Investors/owners can gradually recoup the money invested, but cannot take any dividend beyond that point. Purpose of the investment is purely to achieve one or more social objectives through the operation of the company; no personal gain is desired by the investors.”
Launched in 2008 in Mumbai, GCI has facilitated capital of INR 700 crores ( USD 127 million) to social enterprises serving the base-of-the-pyramid segment, indirectly touching the lives of more than 1 million beneficiaries.
By Chioma Okwudiafor, Research Associate
About Grameen Capital India
Grameen Capital India is a social business providing access to capital markets and for impact-focused enterprises serving the base-of-the-pyramid segment through debt and equity solutions, credit enhancement and advisory services. Grameen Capital also actively advises double bottom-line funds on their impact investment programs in India. Grameen Capital India’s work is complemented by its sister entity Grameen Foundation India, also a social business, providing technical services to organizations working with the poor. Launched in 2008 in Mumbai, GCI has facilitated capital of USD 127 million (INR 700 crores) to social enterprises serving the base-of-the-pyramid segment, indirectly touching the lives of more than 1 million beneficiaries.
About Amit and Arihant Patni
Amit Patni is co-founder & chairman at Nirvana Venture Advisors, a venture capital fund with focus on the internet space in India, and was a promoter shareholder of Patni Computers of India. He has experience in the computer hardware and components market in India and other countries.
Arihant Patni is an entrepreneur, corporate executive and financial advisor with experience in computer software, business development/marketing and information technology infrastructure. Arihant is managing director of Patni Financial Advisors, an investment management firm in India, as well as co-founder and a board member of Nirvana Venture Advisors, an Indian venture capital fund focused on the internet sector.
About Institute for Financial Management and Research (IFMR) Trust
Established in 2008, Institute for Financial Management and Research (IFMR) Trust is a nonprofit organization whose mission is to “ensure that every individual and every enterprise has complete access to financial services.” IFMR Trust carries out its mission through the following five subsidiaries: IFMR Capital, IFMR Mezzanine, IFMR Rural Finance, IFMR Ventures and Kshetriya Gramin Financial Services (KGFS) Capital Partners. As of March 2010, IFMR Trust reported total assets of INR 2.06 billion (USD 45.8 million).
Sources and Additional Resources:
Grameen Capital Press Release: Patnis purchase stake in Grameen Capital India
MicroCapital Story: June 29, 2011, MICROCAPITAL BRIEF: IFMR Trust, Manipal Education and Medical Group (MEMG) Join Government of India’s Rashtriya Swasthya Bima Yojana (RSBY) Health Microinsurance Program
MicroCapital Story: August 22, 2008, PRESS RELEASE: IndusInd Bank, Grameen Capital and SKS partner in $28.9m Microfinance Transaction http://www.microcapital.org/press-release-indusind-bank-grameen-capital-and-sks-partner-in-289m-microfinance-transaction/
MicroCapital Story: January 15, 2008, PRESS RELEASE: Grameen Foundation, IFMR Trust, Citicorp Finance India Launch Grameen Capital India http://www.microcapital.org/press-release-grameen-foundation-ifmr-trust-citicorp-finance-india-launch-grameen-capital-india/
MicroCapital Universe Profile: Grameen Capital India
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